Money

How Much Should You Charge as a Beginner Freelancer?

By Yamraj Khadka · Updated · 3 min read

Pricing is the question every new freelancer worries about. Charge too much and nobody hires you. Charge too little and you work long hours for almost nothing, and attract clients who don't value your work.

The answer comes from three numbers: your minimum, the market rate and the value to the client.

Number 1: Your minimum rate

Your minimum is the lowest rate that covers your costs and pays you what you need. Below it, freelancing costs you more than it earns.

To work it out, you need:

  • Your monthly income goal: what you want to keep after costs and tax
  • Your monthly work costs: internet, electricity, software, and saving for equipment
  • Tax to set aside: this depends on your country, so ask a local accountant if you're not sure
  • Platform fees: for example 20% on Fiverr, or 0% with direct clients
  • Billable hours: the hours you can charge for, not the hours you spend at your desk

That last one surprises most beginners. Finding clients, writing proposals, answering messages and learning all take time that nobody pays for. Many freelancers can only bill four or five hours on a full working day.

A worked example

Say you want to keep $600 a month, your costs are $60, you set aside 10% for tax, you pay a 20% platform fee, and you can bill 4 hours a day for 20 days (80 hours a month).

  1. Money you need after platform fees: $600 ÷ 0.90 + $60 = $726.67
  2. Money clients need to pay before the 20% fee: $726.67 ÷ 0.80 = $908.33
  3. Your minimum hourly rate: $908.33 ÷ 80 hours = $11.35 an hour

Don't want to do the math? Our free hourly rate calculator does it for you.

Number 2: The market rate

Next, find out what clients already pay for your service.

  1. Search for your service on two or three platforms.
  2. Note the prices of ten freelancers at a similar skill level, not the top sellers with thousands of reviews.
  3. Write down the lowest, the highest and the typical price.

As a beginner, start in the lower middle of that range, not at the very bottom. The cheapest sellers often attract the most demanding clients, and it's hard to raise prices for people who hired you because you were cheap.

If the market rate is below your minimum, that's useful information too. You may need a different platform, a more specific niche, or clients in a different country.

Number 3: The value to the client

A logo for a new restaurant can bring in customers for years. A website that brings in five extra orders a week can be worth far more than the hours it took to build. As you gain experience, price by the result, not just the hours. For now, keep this in mind when clients push for very low prices: your work is worth more than the time it takes.

Hourly or fixed price?

For small projects, fixed prices are often better for beginners:

  • Clients like knowing the total cost up front.
  • As you get faster, you earn more per hour.

To set a fixed price, estimate the hours, multiply by your rate, and add 20–30% for revisions and communication. Write down exactly what's included, such as the number of revisions, so the project doesn't keep growing.

Hourly pricing suits ongoing or unclear work, like "help me manage my inbox" or "fix bugs as they come up".

When to raise your prices

  • After your first three to five good reviews
  • When you're regularly busy and turning work away
  • When you add a new skill or deliver noticeably better results
  • At least once a year, to keep up with your costs

Raise prices for new clients first. Give existing clients a few weeks' notice, and keep your word on work you've already agreed.

Remember the fees

A $50 order on a platform that keeps 20% leaves you $40, before any withdrawal and currency conversion fees. Always price based on what you actually receive. Our fee calculator shows how much you keep, and what to charge to take home a specific amount.